Nigeria’s total domestic debt service reached ?1.707 trillion in the second quarter of 2025 (April–June), according to new data published by the Debt Management Office (DMO).
The figures reveal that the government spent ?1.686 trillion on interest payments across various domestic debt instruments and ?20.14 billion on principal repayments, bringing total domestic debt servicing to ?1,707,087,151,475.90 within the three-month period.
Debt servicing peaked in April 2025, when the country spent ?805.31 billion, before declining to ?423.10 billion in May and slightly rising again to ?478.67 billion in June.
According to the DMO, the bulk of Nigeria’s domestic debt service was directed toward Federal Government Bonds (FGN Bonds) and Nigerian Treasury Bills (NTBs), a reflection of the government’s continued dependence on domestic borrowing to finance budgetary shortfalls.
The DMO also reported that Nigeria’s total domestic debt stock had climbed to ?76.59 trillion as of mid-2025, underscoring the increasing cost of managing public debt.
Further analysis of the data shows that Nigerian Treasury Bills (NTBs) accounted for ?537.9 billion in servicing costs for the quarter, with ?254.12 billion spent in April, ?169.39 billion in May, and ?114.39 billion in June. Payments on FGN Bonds were the largest component, totaling ?1.074 trillion, comprising ?502.66 billion in April, ?252.54 billion in May, and ?318.84 billion in June.
The FGN Savings Bond (FGNSB), targeted at retail investors, required ?3.19 billion in debt service, with consistent monthly payments between ?930 million and ?1.17 billion. Servicing of FGN Sukuk bonds, which comply with Islamic finance principles, totaled ?70.72 billion, driven primarily by a ?43.26 billion payment in June and ?27.45 billion in April.
Additionally, Nigeria paid ?1.08 billion in June to service its Green Bonds, which are linked to environmental sustainability projects. The DMO data also revealed that ?20.14 billion was disbursed as principal repayment on Naira-denominated Promissory Notes, while no payments were recorded on foreign currency promissory notes during the period.
